The Beach House at Dana Point closing

A walkway alongside the length of The Beach House restaurant in the East Basin Marina in Dana Point harbor. BY VIK JOLLY, THE ORANGE COUNTY REGISTER

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A view of The Beach House restaurant patio. BY VIK JOLLY, THE ORANGE COUNTY REGISTER

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Masts of docked boats are reflected in the windows of The Beach House restaurant, which will shut its doors after a final brunch on New Year's Day. BY VIK JOLLY, THE ORANGE COUNTY REGISTER

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Gale Pike, owner of the family of The Beach House restaurants, said the poor economy, high rent and fewer customers contributed to a decision to close the Dana Point location. The restaurant was paying a minimum monthly rent of $25,525, according to the county. BY VIK JOLLY, THE ORANGE COUNTY REGISTER

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A view of the East Basin Marina from The Beach House restaurant. BY VIK JOLLY, THE ORANGE COUNTY REGISTER

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A marker in Dana Point harbor includes The Beach House Restaurant. BY VIK JOLLY; THE ORANGE COUNTY REGISTER

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The Beach House sign outside the restaurant in Dana Point harbor. The eatery will shut its doors after more than decade with one final brunch on New Year's Day, BY VIK JOLLY, THE ORANGE COUNTY REGISTER

A walkway alongside the length of The Beach House restaurant in the East Basin Marina in Dana Point harbor. BY VIK JOLLY, THE ORANGE COUNTY REGISTER

The Beach House restaurant will shut its doors after one final brunch on New Year's Day, seeking an early termination of its lease with the county following more than a decade of operation in Dana Point harbor.

The Orange County Board of Supervisors last week approved ending the lease, which was set to expire Jan. 31, 2011.

The restaurant has been "significantly impacted by the economic downturn and increasing operating costs," according to a county document. Consequently, it requested that its lease be terminated as of Dec. 31.

The county will retain the $25,000 security deposit and the early termination of the lease will reduce the Dana Point Harbor's budgeted 2009-2010 lease revenues by approximately $159,535, according to the county.

"After 10 years in Dana Point our lease has expired," Noah Pike, operations manager for The Beach House Restaurants, said in an e-mail. "We wish to thank our loyal guests and hope to serve them at our thriving locations in Laguna Beach and Cardiff by the Sea."

His father, Gale Pike, owner of the family restaurants, said the poor economy, high rent and fewer customers contributed to a decision to close.

The restaurant was paying a minimum monthly rent of $25,525, according to the county.

"Based on those figures and the business we didn't have, (the restaurant) couldn't support that kind of rent," he said.

The Beach House's other two locations also have seen a drop in business by four percent to five percent in the last year but still are going strong, Gale Pike said.

"I don't know what the situation is in Dana Point, maybe the people didn't want to drive out to the island anymore" where the restaurant is located, he said. "If we knew the reasons for Dana Point (location not doing as well), we'd have fixed them."

As part of the early lease termination deal with the county, The Beach House will leave behind about $1 million worth of equipment and improvements, Gale Pike said.

The restaurant will serve out a final brunch on New Year's Day and then close its doors, he said. Its New Year's Eve dinner at about $25 per person is usually sold out, he said.

Harbor Director Brad Gross said the county will put out request for information next year for prospective tenants and should have proposals for the board of supervisors in late winter.

It would "probably be nice to have another big restaurant," he said.

The premises consist of a freestanding building constructed in 1971, approximately 8,700 square feet of restaurant space, an adjoining parking lot with 77 parking spaces, several dining rooms with approximately 250 seats, a full-service bar with approximately 50 seats, and a commercial kitchen of approximately 1,000 square feet with three walk in freezers, according to the county document.

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